If a Proposer and a Responder are asked to split $100 in the ultimatum bargaining game, standard economic theory would predict that the Proposer should offer the Responder:
A)exactly $25.
B)exactly $50.
C)the largest dollar amount possible.
D)the smallest dollar amount possible.

Question

Quizplus · Accepted Answer

The ultimatum bargaining game is a game in which the first player has the power to confront the second player with a take-it-or-leave-it offer. In this setting, the Responder should accept any amount offered by the Proposer, and the Proposer should offer the Responder the smallest dollar amount possible.

If a Proposer and a Responder Are Asked to Split